Definition of Monetary Instrument 5.

Foreign bank accounts – physically taking small

(1) coins or currency of legal tender of the
Philippines, or of any other country;
(2) drafts, checks and notes;
(3) securities or negotiable instruments, bonds,
commercial papers, deposit certificates, trust
certificates, custodial receipts or deposit substitute
instruments, trading orders, transaction tickets and
confirmations of sale or investments and money
market instruments; and
(4) other similar instruments where title thereto
passes to another by endorsement, assignment or
delivery.
Three Stages of Money Laundering
amounts of cash abroad, below the customs
declaration threshold, lodging in foreign bank
accounts, then sending back to the country of origin.
6. Aborted transactions – funds are lodged with a
lawyer or accountant to hold in their client account
to settle a proposed transaction. After a short time,
the transaction is aborted. Funds are repaid to the
client from an unimpeachable source.
Meaning of Layering
Layering is essentially the use of placement and
extraction
over and over again, using varying amounts each
time,
to make tracing transactions as hard as possible

There are usually two or three phases to the

laundering:
• Placement
• Layering
• Integration / Extraction

Examples of Placement
1. Cash businesses – adding the cash gained from
crime to the legitimate takings. This works best in
business with little or no variable costs, such as car
parks, strip clubs, tanning studios, car washes, and
casinos.
2. False invoicing – putting through dummy
invoices to match cash lodged, making it look like
payment in settlement of the false invoice
3. Smurfing – lodging small amounts of money
below the AML reporting threshold to bank
accounts or credit cards, then using these to pay
expenses etc.
4. Trusts and offshore companies – useful for hiding
the identity of the real beneficial owners.